Paramount gets green light for $8 billion merger. But what is the psychic cost for company?

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With this week’s FCC approval, the merger between Paramount Global and Skydance Media is expected to be completed in the coming weeks at a value of $8 billion. The question for the new company is whether the psychic cost is much higher.

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It has been a particularly rough few months at Paramount-owned CBS, where the settlement of a lawsuit regarding “60 Minutes” and announced end of Stephen Colbert’s late-night show has led critics to suggest corporate leaders were bowing to President Donald Trump.

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Following the Federal Communications Commission approval Thursday, one of the triumvirate of current Paramount leaders, Chris McCarthy, said that he would be leaving the company. McCarthy has been in charge of fading cable properties like MTV, Comedy Central and Nickelodeon, expected to bear the brunt of an estimated $2 billion in cost cuts identified by Skydance leaders.

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Skydance head David Ellison is expected to head the new company, and he has identified former NBC Universal executive Jeff Shell as the incoming president.

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CBS News’ trajectory will be scrutinized

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After the merger’s Aug. 7 closing date, the new leaders will be watched most closely for how they deal with CBS News, particularly given the $16 million paid in a settlement of Trump’s complaint that last fall’s “60 Minutes” interview was edited to make opponent Kamala Harris look good. Two news executives — News CEO Wendy McMahon and “60 Minutes” executive producer Bill Owens _ resigned due to their opposition to the deal.

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The appointment of respected insider Tanya Simon to replace Owens this week was seen as a positive sign by people at “60 Minutes.”

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Days before the FCC’s vote, Paramount agreed to hire an ombudsman at CBS News with the mission of investigating complaints of political bias. “In all respects, Skydance will ensure that CBS’s reporting is fair, unbiased, and fact-based,” Skydance said in a letter to FCC Chairman Brendan Carr.

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The role of an ombudsman, or public editor, who examines a news outlet’s work is often positive — if they are given independence, said Kelly McBride, an ethics expert who has had that role at NPR for five years. “You really want the person to have loyalty only to their own judgment and the journalistic mission of the organization,” she said.

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Having the sole mission of examining bias could be problematic, however. To be fair, a journalist’s work should be closely studied before making that determination, not judged on the basis of one report or passage, she said.

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Carr, in an interview with CNBC on Friday, said the role “should go a long way toward restoring America’s trust in media.” Anna Gomez, an FCC commissioner who voted to reject the deal on Thursday, interpreted the arrangement as a way for the government to control journalists.